Chapter 1 Managing Profitable Customer Relationships :

needs wantso demands

-
A

-
L ↓ &
· states of felt deprivation are needs becomes demands when
shaped by
part of
human-make-up they
·
culture ,
society and ,
are backed by
· not created by external forces consumers buying power
Defined
individual
personality
Marketing
.

A socal and by need and want

managerial process which individuals and groups obtain what
they
and and value with
through creating exchanging products others

Model Process
of the
Marketing :

↓ -

What satisfies consumer needs and wants ?

I -

I
D
PRODUCTS anything that be offered to a market to
-

: can

③ need want
① satisfy a or .

-> SERVICES benefit offered

Activity for sale that
:
or

is
essentially intangible and does not

result the
in ownership of anything.
MARKETING MYOPIA :

④
⑤
Sellers more attention to the specific
pay
attributes of the product than to the benefits
and the
experiences produced by products
.

Marketing Segmentation
* divide the market into
segments
-> of costumers

Customer value F customer satisfaction

*
Target Marketing -
> select the
segment to cultivate
.
↓ ↓
costumers evaluation by comparing depends on the product's perceived performance
Marketing Management all the benefits and costs . compared to buyer's expectations

↓
Demand
·
Marketing :
Finding an
increasing demand , also
changing or
reducing demand
,
such as in
demarketing
.
·
Demarketing >
temporarily or
permanently reducing the number of costumers or
shifting
their demand
.
-

↑
-

Marketing Management Philosopies :

· PRODUCTION CONCEPT -*
managers should focus on
improving production and distribution
efficiency .
- Sometimes can lead to Marketing Myopia.
consumers prefer afordable products

·
PRODUCT CONCEPT-D Focuses A can to
on
making continuous product improvements .
also lead
marketing Miopya .

consumers prefer innovative and high quality and performance products

·
SELLING CONCEPT-D think
Strategy Used with
Unsought goods -D those which
buyers do not usually of
obtaining .
Carries the risk of
focusing simply on sales

consumer rather than the market's wants Inside

just buy if it transactions
meeting . - -
Out

reaches a
large-scale
selling and promotion effort Factory ->
Existing Products ->
Selling and
promoting
-> Profits through sales volume

· MARKETING CONCEPT-P
reaching Company goals depends on
understanding and
satisfying the needs and wants of
target markets better than competitors .
It means

Finding the right product that customer focus and value lead to sales .

market -> Costumer needs ->

Integrated Marketing -> Profits through Customer Satisfaction
These
for the
company's customers
. are costumer driven companies - Outside In
-
-

When costumers know what

they want

Costumer-driving
.

what
- antecipates
needs society's
-

Firms will succed if costumers want

· SOCIETAL MARKETING CONCEPT-D they take underlying consumer and well being into
↓
account over long-term . better than the costumers
When costumers don't itself.
tries to balance sumer's wants
profits
Company and
society's
:
interests
. know what
they .
want

Marketing Mix
firm must create (price)
The a need
satisfying market
offering (product) ,
while
deciding how much and how it will distribute it (place) Only .
then it must define how to

its benefits to .
communicate and persuade costumers
buy it

·
All are customer focused
employers .
-

· customer lifetime value -f the entire stream of purchases that the customer would make over a

Costumers that make repeated

and tell others about Lifetime
.
Customers purchases
Evangelists- their positive experiencies
.

Share of Customer The their product

Customer Relationship group
· -D share a
company gets of the customers
purchasing in

Cross-selling is the
better way to increase categories .

P
this

& · customer
equity-D total combined customer Lifetime value .

i · Selective relationship management- Using consumer

profitability analysis to weed out unprofitable costumers and target winning ones
A

a The
changing Marketing Landscape
↓
Y
Every day there's change
,
in the marketplace .
There are five major developments : the digital age , the

changing environment the

LOYALITY
economic
growth , of not for profit marketing , rapid globalization and the call for more ethics and social

responsability.